The Government will give new powers to the Insolvency Service to crack down on reckless directors who phoenix their firms.
The Department for Business, Energy & Industrial Strategy (BEIS) has unveiled a series of new measures on corporate governance and insolvency which include new powers for the Insolvency Service to investigate directors of dissolved companies where they are suspected of having acted in breach of their legal obligations.
Under the new powers, which will be set out in further detail in the autumn, the Insolvency Service will be able to fine directors or even have them disqualified.
The government said the new rules respond to the many calls for the government to act against the practice of phoenixing, which is often used t…
Read the full article at: https://www.ftadviser.com/pensions/2018/08/28/govt-to-crackdown-on-phoenixed-firms/